After California accuses oil industry of price gouging company hits back
Despite declining crude oil prices, gas prices have spiked, last week after the agency demanded oil refinery executives explain why Valero hit back at California’s Energy Commission (CEC). In a Sept. 30 letter to executives CEC Chair David Hochschild wrote “Gas prices have increased by a record $0.84 per gallon in 10 days in California, a $2.50 difference compared to U.S. prices, yet Crude oil prices are down and industry profits are up”. “This degree of divergence hasn’t happened before from national prices, and no explanation has been provided regardless of planned or unplanned refinery maintenance. The oil industry owes Californians answers.” For the price spike Hochschild accused the executives of not providing an “adequate and transparent” explanation. To a tightening gasoline market that has increased gasoline prices over the prior week he noted that the industry’s “lower-than-normal” stockpiles of gasoline appear to be a contributing factor. Hochschild demanded ...